ECB monetary operations

On November 13, the European Central Bank announced the seven-day main refinancing operation (MRO). The operation was conducted on November 14 and attracted bids from euro area eligible counterparties of €7,105 million, €255 million more than the previous week. The amount was allotted in full at a fixed rate equivalent to the prevailing MRO rate of 4.50 per cent, in accordance with current ECB policy.

On November 15, the ECB conducted an eight-day US dollar funding operation through collateralised lending in conjunction with the US Federal Reserve. This operation attracted bids of $236 million, which were allotted in full at a fixed rate of 5.58 per cent.

Domestic Treasury bill market

In the domestic primary market for Treasury bills, the Treasury invited tenders for 28-day and 91-day bills for settlement value November 16, maturing on December 14, 2023, and February 15, 2024, respectively. 

Bids of €93.60 million were submitted for the 28-day bills, with the Treasury accepting €10.60 million, while bids of €106.28 million were submitted for the 91-day bills, with the Treasury accepting €31.18 million. Since €33.82 million worth of bills matured during the week, the outstanding balance of Treasury bills increased by €7.96 million, standing at €531.85 million.

The yield from the 28-day bill auction was 3.665 per cent, increasing by 2.80 basis points from bids with a similar tenor issued on November 9, representing a bid price of €99.7158 per €100 nominal.

The yield from the 91-day bill auction was 3.559 per cent, increasing by 14.70 basis points from bids with a similar tenor also issued on November 9, representing a bid price of €99.1084 per €100 nominal. 

During this week, there was no trading on the Malta Stock Exchange. Today, November 21, the Treasury will invite tenders for 91-day and 182-day bills maturing on February 22 and May 23, 2024, respectively.

The report is prepared by the Monetary Operations and Collateral Management Office of the Central Bank of Malta.